Professional Documents
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Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
organization should focus on ERP software vender viz political, economical, social, environmental and legal.
selection. Researcher discusses the need of ERP software and
Besides this researcher have not done microanalysis of adoption of modern method for maintaining IT resources
impact of each factor on ERP implementation. Amit Pande and Varada Inamdar (2015) in their published
T.K.Balwe (2004) in their seminar paper on “Cooperative research article “Deployment of an ERP in Cooperative
Sugar Industry in Maharashtra: Past, Present and Future” Sugar Industry: An Opportunity or a Challenge?” studied
he examined the designed and developed ERP software present status of computerization and identified there is
package known as VSI Sugar ERP for Indian sugar Industry. need of ERP system for improving effectiveness of business
Author discussed in detail features of package, advantages, practices. Researchers also indentified loopholes in
required infrastructure, implementation process and existing system in agriculture department and researchers
experiences of sugar factories who have implemented VSI made the suggestion of technology transfer.
Sugar ERP. It is a software package aimed to prove an
integrated, low cost, software solution for sugar and allied III. A GLOBAL SCENARIO OF SUGAR INDUSTRY
industry with full and assured maintenance backup. The Sugar was only discovered by western Europeans as a
salient features of VSI sugar ERP are user friendly, easy result of the Crusades in the 11th Century. Sugar is
and flexible for implementation and customization, produced in around 122 countries across the world. Most
ensured security rights required for system and adaptable of them are situated in between 350S and 350N of the
to need based modifications for additional development. Equator with altitudes ranging from sea level above 700
The author highlighted the necessity of this package to the meters and with varying climatic conditions and soils.
sugar industries so as to bring a transformation in the About one third of the world’s sugar production is
operations of the sugar cooperative industries. contributed by the five countries viz., Cuba, Puerto Rico,
Dyaneshwar Pisal, Dr. Ajay Kumar, Vikas Kakade and Dominican Republic, Jamaica and Trinidad. Columbus
Nilesh Chavan (2011) in their research work on introduced sugarcane to American in his second voyage
“Computerized model for sugarcane harvesting for which led to the rapid development of sugar
effective planning and control in cooperative sugar manufacturing in tropical America. The other settlers,
factories in Pune District” they analyzed basic problem of Spanish, Portuguese and Dutch spread sugar
sugarcane harvesting is the improper time management. manufacturing rapidly into many parts of America. During
Researcher designed DSS model for providing idea of the 13th century, sugar cane cultivation started in all the
determine how much crushing is expected in each countries in the Mediterranean. After that Mediterranean
forthnight and manage total crushing of season in advance. became the sources of supply of sugar cane to Europe and
Researcher suggested a system that helps for harvesting Africa. Out of the 122 sugar producing countries, 67
management. produce sugar from cane and 55 from beet. Asia ranks first
Rajendra Kumbhar (2011) in his research work on ”ERP in respect of area under sugarcane, followed by South
system for effective management of cooperative sugar America, Central America and the Caribbean. Sugar beet is
industries –A case study of Sahyadri SSK, Shirawade, mainly produced in Europe and to a lesser extent, in Asia
Karad” he has highlighted various issues related to sugar and North America. Brazil, India, Thailand, Australia and
industries such as lack of transparency in management and Cuba are the largest sugarcane producing countries.
slow rate of information processing that leads to losses, Cooperative Sugar Industry in Maharashtra: A
corruption and misappropriation of funds. To solve these Historical Background:
problems researcher suggest multi-module integrated ERP Maharashtra state is located geographically in the world’s
software for organization development including most ideal belt for growing sugarcane. It was a late starter
sugarcane management, chemical lab management, cane in sugarcane cultivation compared not only to other
billing, sales, godown management, shares, deposit, countries located in this belt but compared even to other
distillery and financial management modules. areas in India such as Uttar Pradesh and Bihar. These
Haridas B. Jogdankar and Minakshi V.Waykole (2014) in Northern States situated in subtropical belt are not located
their research paper on “Impact of Information Technology in the ideal belt. The first sugar factory in Maharashtra was
and Management on Sugar Industries” studied status of IT established in 1919. This was the Belapur Sugar mills at
implementation in private and cooperative sugar factories Haregaon in Ahmednagar district. The second sugar
in Solapur district. Researchers were observed sugar factory was established in 1930, viz. the Walchand Sugar
factories are using obsolete technology and application factory. In 1930 tariff commission was appointed to
software which are not fulfilling their information needs. examine the need of protection to the sugar industry. The
Researcher also observed issues related to manpower tariff commission recommended protection for a period of
training and other factors affecting on IT implementation fifteen years. The government of India not only granted
29 | P a g e
Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
protection to the sugar industry but also adopted a for ERP implementation but they are not getting desired
favorable policy and provided incentive to the industry. results from ERP solution. Researcher done initial
Due to the new policy, 13 sugar factories were established discussion with EDP Managers of two sugar units who are
in Maharashtra by the end of the Second World War. All implementing ERP solution and according to that
these factories are private and joint stock companies. discussion these units are facing some problems like
Before independence there was not a single cooperative exceeds the budget of the project, delays in
sugar factory in Maharashtra . In 1948, the first implementation and ERP implementation planning
cooperative sugar factory was established in Maharashtra mismatch etc. So the research problem is to study the
in the Ahmednagar district, viz. the Pravara Cooperative present status and issues related with ERP implementation
sugar factory. From this period onwards, large number of in sugar units.
cooperative sugar factories have been established in India,
especially in Maharashtra. Now sugar factories have VI. OBJECTIVES OF STUDY
become a dominant aspect of agro industrial picture in Research work is undertaken to suffice following
Maharashtra. objectives
1. To find present status of ERP implementation in
Sugar Co-Operatives in Kolhapur District: cooperative sugar units.
The Kolhapur district of Maharashtra lies between 15o 43' 2. To identify problems in ERP implementation in
and 17o 10 ' north latitude and 73o 40 and 74o 42 East cooperative sugar units.
longitude in the Krishna, Panchaganga basin. It is bound on
the north by Satara and Sangli Districts, on west by VII. SCOPE OF STUDY
Ratnagiri District and on the east and south by Belgaum The geographical scope of present study is confined to
District of Karanataka state. The main rivers of the district cooperative Sugar factories in Kolhapur District where ERP
are Krishna, Warana, Panchaganaga, Doodhganga, Kumbhi- implementation is done. The conceptual scope of study is
kasari, hiranyakeshi which are helpful for irrigation and confined to ERP concept, implementation life cycle, ERP
sugar cane production. This area lies under the tropical related technologies and infrastructural components
belt and its hot climate and humid atmosphere are required for ERP. The researcher was use various
favorable for the growth of sugarcane. statistical tools for data analysis viz. averages, SD,
correlation coefficient etc.
IV. PROFILE OF SAMPLE SUGAR UNITS A. Conceptual Scope: The conceptual scope is focusing on
Researcher has selected following sugar units from ERP concepts, ERP modules, ERP products and ERP
Kolhapur District for study- implementation methodology.
Unit
Sugar Industry Name
Establishment Year B. Analytical Scope: The data collected is analyzed with
No
the help of statistical tools Excel and SPSS.
Tatyasaheb Kore Warana Sahakari
A Sakhar Karkhana Ltd., Warnanagar Tal 1983
Phanala, Dist Kolhapur VIII. SIGNIFICANCE OF STUDY
Shri. Datta SSK Karkhana Ltd. 1. It will help the sugar industry to design the exact
B 1969
Dattanagar, Shirol required ERP software solution.
Jawahar Shetkari Sahakari Sakhar 2. This study will assist the top management for
Karkhana Ltd., Kallappaanna
C
Awadenagar, Hupari Yalgud, Tal.
1990 effective implementation of ERP and take suitable
Hatkanangale, Dist. Kolhapur decisions.
Chha. Rajaram Sahakari Sakhar
D Karkhana Ltd. Kasaba Bavada , Tal- 1984 IX. RESEARCH METHODOLOGY
Karveer
The study is descriptive inferential in nature and data is to
be collected by using survey method..
V. MANAGEMENT PROBLEM
Instrument: A structured schedule is prepared for
Some of the sugar units make heavy investments in ERP
collecting data from ERP users; based upon ERP
implementation but they are not getting real benefits of
implementation methodology used by vendors and EDP
ERP system. Now days ERP implementation in sugar
I/Cs of Cooperative sugar units and personally
industry is growing, but due to the lack of knowledge
administered by the researcher to solicit information from
regarding ERP implementation, failure rate also increases.
the sample..
ERP implementation is one of the most important and
DATA COLLECTION
costly affair. Some sugar units especially in western
Primary Data: The researcher has used structured
Maharashtra are switched towards ERP implementation
questionnaire to collect primary data. Data regarding
since 2007-08 Organizations spent huge amount of money
30 | P a g e
Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
user’s opinion on ERP implementation activities by below table. This response helped researcher to analyze
Sugar factories and opinion of steering committee the link between parameter selection and the benefits
members, ERP vendors is obtained by interacting with received by the sugar industry based on these criterions.
these peoples Table No.2: Parameters used for Selection of ERP
Sr. Parameter Unit A Unit B Unit C Unit D Total
Secondary Data: The necessary secondary data such No
Degree of
SAMPLE DESIGN integration
13 10 10 4 37 32
2 between various
In Kolhapur district there are seventeen cooperative components of ERP
(68.4%) (47.6%) (52.6%) (40.0%) (53.6%) (46.4%)
system
sugar units are working out of these units six units are 11 12 11 5 39 30
3 Flexibility (57.9%) (47.6%) (57.1%) (50%) (56.5%) (43.5%)
using ERP systems and researcher has taken four units for
study. 4 Complexity
5 10 12 4 31 38
There are 226 users using ERP system in these four units (26.3%) (47.6%) (63.1%) (40.0%) (56.5%) (44.5%)
n= N/1+N (e)2 5 14 6 4 29 40
Quick
Where, N= Total population 6
Implementation
(26.3%) (66.6%) (31.6%) (40.0%) (42.0%) (58.0%)
= 226/3.26 Independence
16 15 15 7 53 16
= 69.32 9 Security (84.2%) (66.7%) (78.9%) (70.0%) (76.8%) (23.2%)
n =69 Availability of
4 14 12 5 35 34
10 (21.1%) (66.7%) (63.1%) (50%) (50.7%) (49.3%)
The method used for selection of sample is stratified Regular Upgrades
31 | P a g e
Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
B. PROBLEMS IN ERP IMPLEMENTATION: Above table consist of respondents opinions with regard to
Researcher has gathered opinions of ERP users about problems in ERP implementation in Unit D. It revealed
various problems related to ERP implementation using unavailability of trained user and unreliable vendor are
liker scale and mean and standard deviation is calculated. prominent problems as mean is 1.9. However other
Unit wise analysis is given as below. problems are data integration, lack of business
Table No.3: Problems in ERP Implementation reengineering, improper suggestions from consultant,
Unit Unit Unit customization issues, requirement gaps, complexity of
Sr. ERP Implementation Unit A B C D
application etc. as mean is between 2.1 to 2.5.
No. Problems
Mean Mean Mean Mean Overall it is observed that all sample units encounter the
Integration of different problems in general and it intensity differs as per unit and
1 types of data was a big 2.1 2.5 2.5 2.3 their management.
problem
2
Users not well trained to
2.6 3.1 3.0 1.9 C. STATUS OF IT TRAINING ORGANIZED BY SUGAR
use the system
UNITS
Vendors are very Researcher used data generated by training need
3 2.8 2.0 2.8 1.9
unreliable
assessment and worn it to know the frequency of training
Customization of ERP to
4 organizational needs took 2.5 2.5 2.7 2.1 and training area imparted to employees of the sample
long time sugar units.
Improper Suggestion by Table No. 4: Status of IT Training
5 Consultant for selection of 2.9 2.5 2.6 2.5
Unit A Unit B Unit C Unit D
ERP Training
Sr
Lack of Top management Area
6 2.9 3.0 3 2.4 Y N Y N Y N Y N
involvement
Lacking in Business IT 1
7 2.7 2.5 2.5 2.2 1 5 6 15 4 15 1 09
Reengineering Awareness 4
Recent 1
Above table comprise viewpoint of respondents towards 4
Trends in IT
2
7
4 17 3 16 0 10
32 | P a g e
Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
organization is lacking in providing IT training except ERP dissatisfied whereas 13.04% users are neutral about ERP
usage training. systems in their organization.
In Unit C, ERP usage training is provided to all users, From above interpretation it has been concluded that more
26.31% users opined that system security and audit than half of the users are not satisfied about ERP systems
related training is organized whereas 15.78% opined that in organization. Researcher observed that 57.96%
hardware & networking, recent trends in IT related respondents from the sample units are not happy with ERP
training is provided by organization. Though organization systems in organizations.
provided ERP usage training to all users but they are
lacking in providing training in other areas. X: CONCLUSION
In Unit D, 10% respondents are agree on organization In the light of above observations, discussions and
provides IT awareness training. 20% respondents opined observations on site the following conclusions are derived:
that System Security and Audit and Hardware and Irrespective of the size of the sugar units, the status of ERP
Networking training are provided by organization whereas implementation is more or less the same in the general
no training is provided related to recent trends in IT. In management functional area of all the units. All the units
case of ERP usage training all respondents are availed are performing the activities of their finance, agriculture
training but frequency is very low. From above department by using ERP. In spite of the major role of
interpretation it has been concluded that Unit D is also Engineering and Manufacturing departments in the
lacking in providing IT related training. process of cost reduction and quality improvement, most
From analysis related to IT training it depicts that top of the sugar units have neglected from ERP
management is unaware about importance of training in IT implementation. All ERP implementation issues are
field in general and ERP implementation in specific. encountered in organization and customization, untrained
users and unreliability of vendors are prominent problems
D. SATISFACTION ABOUT ERP SYSTEM found in ERP implementation. It is also found that more
Researcher has collected opinions of ERP users regarding than half (60%) of the ERP users having education
to satisfaction about ERP system as highly satisfied, qualification below 12th standard. The suggestions offered
satisfied, neutral, dissatisfied and shown in below table. would be of immense help to sugar units under study in
Table No. 5: Satisfaction about ERP System particular and cooperative sugar industry in general for
Unit Highly Satisfied Neutral Dissatisfied Highly furthering its ERP implementation base. This, in turn,
Code Satisfied Dissatisfied
Unit 2 4 2 8 3 would result in efficient and effective management of
A (10.52%) (21.05%) (10.52%) (42.10%) (15.81%) cooperative sugar units.
Unit 4 7 3 4 3
B (19.04) (33.33%) (14.28%) (19.04) (14.28%)
Unit 3 5 3 5 3 REFERENCES
C (15.81%) (26.31%) (15.80%) (26.31%) (15.80%) 1) W.Mc. Whinney, C.R.Murry (1974), “Digital computer
Unit 2 2 1 4 1
D (20.00%) (20.00%) (10.00%) (40.00%) (10.00%)
tool for sugar factories”, Proceedings of International
Total
11 18 9 21 (30.43%) 10 (14.49%) Conference.
(15.94%) (26.08%) (13.04%)
2) Liang Zhang, Matthew K.O. Lee, Zhe Zhang1, Probir
(Source: Primary Data) Banerjee. (2002). “Critical Success Factors of
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satisfied, 21.05% users are satisfied, 42.10% users are 36th Hawaii International Conference on System
dissatisfied, 15.81% users are highly dissatisfied whereas Sciences (HICSS’03).
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organization. In Unit B 19.04% users are highly satisfied, conference on “Cooperative Sugar Industry in
33.33% users are satisfied, 19.04% users are dissatisfied, Maharashtra: Past, Present and Future” seminar held
14.28% users are highly dissatisfied whereas 14.28% at Pune.
users are neutral about ERP system in organization. In Unit 4) Dnyneshwar Pisal, Dr. Ajay kumar, VikasKakade and
C, 15.81% users are highly satisfied, 26.31% users are Nileshchavan(2012), ”Computerized model for
satisfied, 26.31% users are dissatisfied, 15.80% users are sugarcane harvesting for effective planning and
highly dissatisfied whereas 15.80% users are neutral about control in cooperative sugar factories in pune district.”
ERP system in organization. In Unit D 20.00% users are IJCSR ,Vol No.1, IssueNo.9.
highly satisfied, 20.00% users are satisfied, 40.00% users 5) Rajendra Kumbhar,(2011), “ERP system for effective
are dissatisfied, 10.00% users are highly dissatisfied management of cooperative sugar industries-A case
whereas 10.00% users are neutral. In all units 15.94% study of sahyadri SSK, ShirawadeKarad”, International
users are highly satisfied, 26.08% users are satisfied,
30.43% users are dissatisfied, and 14.49% users are highly
33 | P a g e
Proceedings of International Conference on Advances in Computer Technology and Management (ICACTM)
In Association with Novateur Publications IJRPET-ISSN No: 2454-7875
ISBN No. 978-81-921768-9- 5
February, 23rd and 24th, 2018
Journal of Information Technology and Knowledge 7) Amit Pande and Varda Inamdar (2015)”,
Management, Volume 4, No. 1, pp. 33-37 Understanding an ERP design with respect to
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“Impact of Information Technology and Management Vol.03 Issue-01
on Sugar Industries”. International Multidisciplinary 8) Alexis Leon(2007), “ERP Demystified”, Tata McGraw-
Research Journal,Vol.4 Issue 6. Hill Co. Ltd,2nd Edition.
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